By Simon Walton, Partner, Davis Woolfe

A number of years ago, I acted for renowned classic car dealer Gregor Fisken in a High Court dispute concerning the sale of a Classic 1962 Ferrari GTO worth in the region of $45m. The case attracted considerable media attention and ultimately succeeded at trial. Whilst the facts were very different, the dispute was a reminder that when dealing with rare and valuable motor cars, questions of provenance, authenticity and description can be every bit as important as the vehicle itself.

Those issues have resurfaced in a new High Court claim involving an Aston Martin worth £880,000. The case raises an interesting legal question:

When is a car not actually the car it is said to be?

The Aston Martin dispute

According to the claim, a Belgian collector purchased what was described as a 1959 Aston Martin DB4 rebuilt to DB4 GT Zagato specification for £880,000. The seller was a specialist Aston Martin dealer.

The purchaser alleges that the vehicle was advertised as a 1959 Aston Martin DB4 bearing chassis number DB4/217/L and that he relied upon those representations when entering into the transaction.

The claim goes much further. The purchaser alleges that:

• the chassis number belongs to a different Aston Martin altogether;
• the vehicle does not contain an authentic Aston Martin engine or gearbox;
• it was assembled from various old and new parts;
• it is not a genuine Aston Martin DB4; and
• it cannot lawfully be registered for road use in Belgium.

The claimant’s case is that the vehicle is, in classic car parlance, a “bitser” – a car assembled from components rather than a vehicle possessing the identity claimed for it.

The dealer, however, strongly disputes those allegations and has reportedly stated that it relied upon documentation and records which it believed accurately established the vehicle’s identity and provenance.

As matters stand, these are allegations only and will ultimately be determined by the court.

Why do these disputes arise?

Classic and collector cars occupy a unique position in the market.

For most modern vehicles, value is driven largely by functionality. For historic and collectible vehicles, value may depend upon a combination of factors including:

• provenance;
• originality;
• matching numbers;
• ownership history;
• competition history;
• rarity; and
• authenticity of major components.

Seemingly small issues can have enormous consequences. A vehicle worth hundreds of thousands of pounds as a genuine factory-produced car may be worth substantially less if doubts arise regarding its identity or originality.

Indeed, the difference in value between a genuine period vehicle and a recreation, replica or reconstructed vehicle can be measured in millions rather than thousands.

The legal issues

Although the facts of every case differ, disputes of this nature often involve several overlapping legal principles.

Sale by description

Where a vehicle is sold by reference to a particular description, the buyer may argue that the vehicle delivered does not correspond with that description. In the Aston Martin case, the claim relies in part upon allegations concerning the stated identity and chassis number of the vehicle.

Misrepresentation

If statements made before purchase induce a buyer to enter into the transaction and those statements prove to be false, a claim for misrepresentation may arise. The potential remedies can include rescission of the transaction and damages.

Fitness for Purpose

The claim also alleges that the buyer made clear that the vehicle was being acquired for registration and road use in Belgium. Where a seller knows the purpose for which goods are being purchased, disputes can arise if the goods cannot achieve that purpose.

Lessons for buyers and sellers

Cases involving high-value collector cars are unusual in their facts but not in their legal themes.

Whether the asset is a classic Ferrari, a rare Aston Martin, a yacht, a work of art or another valuable collectible, the same fundamental questions often arise:

• What exactly was represented?
• What did the buyer rely upon?
• What documentation existed?
• Was the description accurate?
• What is the asset actually worth?

As values continue to rise in the collector car market, disputes concerning provenance and authenticity are likely to become more common rather than less.

For lawyers, these cases sit at a fascinating intersection between contract law, misrepresentation, valuation evidence and specialist historical expertise.

For buyers and sellers, they serve as a reminder that in the world of collectible vehicles, sometimes the most important part of the car is not what is under the bonnet, but its identity.